Mr Andrew Forrest chairman of FMG said that Chinese customers are buying about 95% of the ore mined by Australia's Fortescue Metal Group Ltd. China needs us to supply the iron ore.

Due to the booming demand in Chinese market over the past decade, FMG has become the world's fourth largest iron ore producer 5 years since its formation in 2003.

In November, FMG bought an 18 percent stake in Oil Basins Ltd, an Australian company. But FMG has no plans to further expand its business scope.

Mr Forrest said that "We will still focus on the iron ore."

Since its establishment, FMG has adopted the development model of expansion with high liabilities. As the iron ore boom is over, FMG has been expanding its capacity to lower production costs and needs cash flow to cover its liabilities.

Under the dual challenges, Forrest has stressed the importance of the Chinese market.

Forrest is optimistic about Chinese demand in the future. He said that when the urbanization level of the United States increased to 50% from 40%, the per capita steel consumption was about 5.2 tonne.

In China now, the figure is 300 kilograms. The disparity means demand is huge.